Exhibit 7-15 Long-Run Average Cost

question 41

Multiple Choice

Exhibit 7-15 Long-run average cost

If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

• A) 500 units per week.
• B) 1,000 units per week.
• C) 1,500 units per week.
• D) 2,000 units per week.

---

Definitions:

Seasonal Adjustments

Seasonal adjustments are statistical changes made to remove or reduce periodic and predictable fluctuations within data, often related to specific seasons or times of year.

Hibernation

A state of inactivity and metabolic depression in animals during winter to survive when food is scarce, characterized by lower body temperature, slow breathing, and heart rate.

Ecdysone

Steroid hormone that controls molting in arthropods.

Molting Hormone

A hormone, also known as ecdysone, that triggers the molting process in arthropods, leading to shedding of the exoskeleton and growth.